[39] Britain not granting export license to Cypriot weaponry based on UK
policy

ATHENS, 9/5/2006 (ANA/MPA)

Greece's fiscal deficit will fall to 3.0 percent of the country's Gross
Domestic Product (GDP), while economic growth will reach 3.5 pct this year,
the European Commission said on Monday.

In its spring economic forecasts report for the period 2006-2007, released
in Brussels, the Commission said the country's public debt will reach 105
pct of GDP this year before falling to 102.1 pct in 2007. Greece's public
debt was 81.5 pct in 1981-2001, 110.7 pct in 2002, 107.8 pct in 2003 and
108.5 pct in 2004. The EU's executive also forecast that Greek inflation
would be stable at 3.3 pct in 2006 and 2007, while unemployment would fall
gradually to 9.5 pct this year and to 9.1 pct in 2007.

It is the first time since 2004 that the Commission forecasts a fiscal
deficit within the limits set by the Maastricht Treaty. The Commission's
forecast on Greek economic growth is higher from its fall economic report
and the fourth highest in the Eurozone.

The report said the country's fiscal deficit totaled 4.5 pct of GDP in
2005, up 0.75 pct from its fall predictions which included a provision for
proceeds from securitization totaling 0.8 pct of GDP that never
materialized.

The Commission said government measures to expand the tax base and to
combat tax evasion would have resulted in an increase of budget revenues by
0.25 pct of GDP this year, while stressing that its forecast for a fiscal
deficit of 3.0 pct of GDP in 2006 included only half of temporary measures
included in the country's budget. The report said public spending will fall
by 0.75 pct of GDP and said the Greek structural deficit will drop by 1.0
percent of GDP this year.

The Commission said it expected the fiscal deficit to rise to 3.6 pct of
GDP in 2007 and said "structural measures will be needed to maintain a
fiscal deficit below 3.0 pct".

Economy and Finance Minister George Alogoskoufis said next week that the
Commission would review its forecasts right after it was briefed over a
draft budget plan for 2007.

The Commission said economic growth rates slowed slightly in 2005 to 3.6
pct, after a two-year period of strong growth, and acknowledged that
despite a fiscal adjustment program implemented by the government, economic
growth was slightly better compared with the Commission's initial
forecasts. The report said net exports contributed to economic growth,
while private consumption fell and public consumption grew more than 3.0
percent in 2005.

The EU's executive said it expected Greek economic growth at 3.5 pct this
year and 3.4 pct in 2007 and noted that rising oil prices would slowdown
private consumption. The Commission also forecast high growth rates in net
household borrowing, mostly mortgage, while public consumption to remain
unchanged and private investments to rise in the two-year period.

The Commission said that strong growth rates would raise employment by 1.0
percent annually in the 2006-07 period, while wages would also rise. The
report, however, said that unchanged productivity would not lead to a
significant reduction of labor cost per unit, which would continue growing
above the EU average. The Commission said the inflation rate would remain
above 3.25 pct in 2006 and 2007.

"The Greek government will fully adhere to its stability and growth
program", Alogoskoufis said, while he emphasized that efforts must now
focus on achieving this year's goals. The Greek minister said a reduction
of tax factors for private taxpayers would begin in 2007 and noted that a
huge progress has been made in the economy in the last few years, while he
reiterated that a mild fiscal adjustment policy would be continued.

Fiscal adjustment will focus more on reducing public overspending and
combating tax evasion, Alogoskoufis said. He noted that the government's
goal was to bring its fiscal deficit to 2.6 pct this year.

Commenting on forecasts included in a Commission's report, Alogoskoufis
said the EU executive's forecasts were more conservative both on economic
growth and fiscal deficits. He noted that the Commission predicted a fiscal
deficit of 3.8 pct of GDP this year, in its November 2005 forecasts, and a
3.0 pct deficit in its spring report. "The government is steadfast at its
goal of reducing the deficit to 2.6 pct of GDP," he said.

"We will not allow a deficit above 3.0 pct in the coming years. Our effort
must be sustainable but it could take years for Greece to present a fully
balanced budget," Alogoskoufis said.

The Greek minister said the government was taking measures to reduce
unemployment, but noted that special measures were designed for certain
regions of the country with very high unemployment rates, such as early
retirement.

Alogoskoufis sounded confident that rising oil prices would not escalate
into an oil crisis. He also urged all interested parties to show a sense of
responsibility in a dialogue over the country's pension system.

Speaking to reporters, Alogoskoufis said both political parties and trade
unions must begin a serious discussion on the issue and leave aside
petty-politics. He welcomed a series of proposals made by PASOK main
opposition party, saying they were contributing in a dialogue.

A reform of the country's pension system must include a re-examination of
an early retirement plan, hiring, combating contribution evasion, a more
efficient management of funds' real estate assets and improving funds'
functions, a report by the Bank of Greece said recently.

The central bank's report said that ensuring the viability of the pension
system was also based on improving both the country's fiscal situation and
the labor market's operation. It also noted that the size of adjustment
needed in Greece was larger compared with other EU member-states which have
already agreed on reducing public debt, boosting employment and reforming
the pension system.

Almunia asks Greece for more structural measures: A reduction of Greece's
fiscal deficit below 3.0 percent of GDP is feasible if Athens responds to a
recommendation by ECOFIN to take all necessary measures to bring the fiscal
deficit below 3.0 percent this year, EU Monetary Affairs Commissioner
Joaquin Almunia said on Monday.

Speaking to reporters on Monday after the Commission released its spring
economic forecast report, Almunia stressed, however, that for a country to
be placed outside an excessive deficit procedure it must prove that a
reduction of its fiscal deficit will be permanent and stable. The Spanish
Commissioner said the EU's executive was awaiting the presentation of
measures to be taken by Greece in order to ensure a permanent reduction of
its deficit. The Greek government has said it would inform the European
Commission over such measures in fall with its draft budget for 2007.

Almunia noted that a reduction in the fiscal deficit for 2007 must be based
on structural measures and not one-off measures.

"Under the weight of his policy, which has hurt the economy and burdened
the public, Mr Alogoskoufis has resorted to fiscal alchemy, indifferent to
the repercussions on the country's future," the party's economics
spokeswoman, Vasso Papandreou, said in a statement.

"The actual message from the budget is not encouraging. The rate of
increase in revenue on a monthly basis has dropped to 3.3% in March and
1.0% in April versus the same months of 2005, despite a rise in the first
two months due to circumstances," Papandreou noted.

She was responding to statements by Alogoskoufis earlier in the day.

Gov't replies to criticism of economy: The finance ministry on Monday
rejected criticism by the main opposition Panhellenic Socialist Movement
(PASOK) of its handling of the economy.

In a statement, the ministry accused the party of misleading the public
with alarmist statements, also recalling PASOK's problems with the budget
when in power.

Opposition party sees new economic measures ahead: The opposition Coalition
of the Left, Movements and Ecology on Monday forecast that the government
would have to introduce new economic measures in coming years to keep the
fiscal deficit below the European Union's ceiling of 3% of gross domestic
product.

The measures would mean extension of austerity policies that had hurt the
public in terms of wages and pensions, the Coalition's economic and social
affairs spokesman, Panayiotis Lafazanis, said in a statement after release
of the EU's spring forecasts.

ATHENS, 9/5/2006 (ANA/MPA)

Foreign Minister Dora Bakoyannis will meet with Iran's top nuclear
negotiator, Ali Larijani, on Tuesday morning at the foreign ministry in
Athens, according to a press release issued by the ministry a day earlier.

The meeting will come in the wake of an utterly surprise development on
Monday, as Tehran announced that Iranian President Mahmoud Ahmadinejad had
conveyed a letter to US President George Bush proposing "new solutions for
getting out of international problems and the current fragile situation of
the world."

Larijani, who is also the secretary of Iran's powerful Supreme National
Security Council (SNSC), was in Ankara, Turkey on Monday as part of efforts
to rally support for Tehran's controversial nuclear program ahead of
possible UN Security Council action, according to wire services.

9/5/2006 (ANA/MPA)

Deputy Foreign Minister Yiannis Valinakis left for New York on Monday to
represent Greece at a meeting of the U.N. Security Council, at the level of
ministers, to discuss the implementation of a peace deal signed between
Sudan's government and Darfur's main rebel faction in Abuja, Nigeria on May
5.

ATHENS, 9/5/2006 (ANA/MPA)

Through systematic efforts in recent years, Greece is a shining example and
is paving the way for other countries in the region as they aspire towards
becoming members of the European Union, Prime Minister Costas Karamanlis
said on Monday, ahead of Europe Day celebrated on May 9.

"Twenty-five years since it joined the European family, Greece possesses
the experience, plays a part and has a say in European developments. We are
actively participating in European integration processes. We are developing
initiatives and playing a leading role in developments focusing on our
region," Karamanlis said.

"The recent enlargement achieved a historic reunion of our Continent and
definitely strengthened Europe. Today, the European Union represents
roughly 450 million citizens and a unique mosaic of peoples, which
constitutes its strength. This strength gives Europe a greater voice on the
international stage," he continued.

Looking forward, the objective is "to focus our efforts in bringing Europe
closer to citizens; to address the concerns and problems of European
citizens effectively; to work together with citizens in building a Europe
they envision; to restore Europeans' trust in Europe," he concluded.

Europe Day marks the anniversary of May 9, 1950, when the first move was
made towards creating what is now known as the European Union, when French
politician Robert Schuman presented his proposal on the creation of an
organized, prosperous and peaceful Europe.

ATHENS, 9/5/2006 (ANA/MPA)

The Institute of Regions of Europe (IRE), with the support of the Austrian
Presidency of the European Union's Council, will be organizing the "Cafe d'
Europe", a European cultural event in the framework of Europe Day
celebrations on May 9 at historic cafes in European cities.

The "Cafe d' Europe" will be an open forum for discussion and an exchange
of views by young people all over Europe.

Twenty-seven cafes in an equal number of European capitals will host on May
9 a total of 27 writers who will write literary stories for Europe and
ordinary European citizens.

In Greece, the "Cafe d' Europe" will take place at the "Ianos" cafe (24
Stadiou Street) where writer Sotiris Dimitriou will speak about his
participation in the book "Stories of Europe" which will present the
cultural multiformity of Europe from Dublin to Athens and from Lisbon to
Riga.

BRUSSELS, 9/5/2006 (ANA/MPA)

The session of the UN's Sustainable Development Committee (CSD) will be
held in New York between May 10-12 with the participation, on the part of
the European Commission, of Environment Commissioner Stavros Dimas.

The session will focus on progress achieved on issues concerning
sustainable energy, the change in climate, atmospheric pollution and
industrial development.

According to an announcement issued by the European Commission on Monday,
Dimas will support energy policies which improve the access of poorer
populations to energy services while, at the same time, maximizing on a
worldwide scale energy performance and the use of renewable energy sources,
leading to better environmental protection.

Dimas will also announce the beginning of the EU's facilitating financing
in the energy sector through which 220 million euros will be provided for
projects improving access to energy, particularly in renewable energy
sources, primarily in Subsahara Africa.

Referring to the session, Dimas said "the process of the CSD offers us the
unique opportunity to place the world in a sustainable energy orbit. We
need an integrated approach with the purpose of improving energy
performance, the promotion of technological innovation, the expansion of
markets for renewable energy sources and the promotion of cleaner mineral
fuel in transport."

ATHENS, 9/5/2006 (ANA/MPA)

Prime Minister Costas Karamanlis will unveil his ruling New Democracy
party's proposals on the Constitutional revision at the upcoming ND
Parliamentary Group meeting on Thursday, it was announced on Monday.

The prime minister met Monday with Interior, Public Administration and
Decentralization Minister Prokopis Pavlopoulos, and conferred on the issue
for two hours.

Pavlopoulos commented after the meeting that the ongoing discussions aimed
at finalizing the Constitutional revision proposal soon to be tabled in
Parliament. He added that more details will be given by the prime minister
at the New Democracy Parliamentary group meeting.

ATHENS, 9/5/2006 (ANA/MPA)

Ruling New Democracy's Parliamentary group is to meet on Thursday morning
with Prime Minister Costas Karamanlis in the chair to discuss plans for
revising the Greek Constitution. The meeting will be addressed by
Karamanlis.

On Monday evening at 19:30, the prime minister will attend the launch of a
new book by Manolis Glezos entitled "National Resistance 1940-45" at the
Evgenides Institute, while at 10:00 on Tuesday he will have a meeting with
Finance Minister George Alogoskoufis.

Immediately afterward, Karamanlis will chair a meeting of the cabinet to
discuss issues concerning the defense ministry.

ATHENS, 9/5/2006 (ANA/MPA)

The government does not comment on the PASOK-backed candidates in local
elections, alternate government spokesman Evangelos Antonaros stressed on
Monday.

"The citizens are those who judge, compare and finally choose," Antonaros
stressed in response to questions regarding reactions in ruling New
Democracy to PASOK's decision to place a Moslem woman, Gulbeyaz Karahasan,
at the head of its election ticket for the Drama-Xanthi-Kavala
supraprefecture.

Karahasan, a lawyer by profession, is a member of the Moslem minority in
northern Greece and alternate secretary of the PASOK municipal organization
of Miki in Xanthi, northeast Greece.

The spokesman, in response to questions on the statements made by
Macedonia-Thrace Minister George Kalantzis regarding PASOK's candidate,
also underlined that all Greek citizens have the right to vote and run for
office, adding that this is beyond dispute and only one in bad faith could
question this statement.

In a later statement on Monday, Kalantzis strenuously denied that he had in
any way questioned whether Karahasan was Greek.

Regarding PASOK leader George Papandreou's statements "on extreme right
views" in the governing party, the alternate government spokesman stated
that the democratic character of New Democracy and the government do not
need Papandreou's or PASOK's confirmation. He said that ND was the party
that re-established democracy in Greece after the 7-year dictatorship and
the party that led Greece to the European Union adding that ND is proud of
its past, present and of course, its democratic future.

ATHENS, 9/5/2006 (ANA/MPA)

The candidacy of Gulbeyaz Karahasan, a Moslem woman, for the
Drama-Xanthi-Kavala supraprefecture, is particularly symbolic proving that
no one in Greece of 2006 can be discriminated against based on sex,
religion, age or any other discriminatory factor, main opposition PASOK
Spokesman Nikos Athanassakis said on Monday, referring to the party's
candidate in the upcoming local elections.

He accused the government of "speaking out of both sides of its mouth,
saying one thing publicly, while New Democracy officials, such as
Macedonia-Thrace Minister George Kalantzis", according to Athanassakis, "is
demanding proof of citizenship regarding Karahasan's status".

In an earlier statement on Monday, Kalantzis strenuously denied that he had
in any way questioned whether Karahasan was Greek.

ATHENS, 9/5/2006 (ANA/MPA)

Macedonia-Thrace Minister George Kalantzis on Monday strenuously denied
that he had ever questioned whether the female Moslem lawyer Gul Karahasan
chosen by main opposition PASOK as its candidate for the
Kavala-Xanthi-Drama superprefecture was Greek.

"I have never disputed the Greekness of Mrs. Karahasan," the minister
stressed in response to questions, pointing to the candidate's own
statements that she was a "Greek Moslem". At the same time, he predicted
that the ticket backed by PASOK would lose the elections.

ATHENS, 9/5/2006 (ANA/MPA)

In a comment on statements made by Turkish Prime Minister Recep Tayyip
Erdogan's regarding his talks with Prime Minister Costas Karamanlis in
Thessaloniki - particularly concerning the Moslem minority in northern
Greece and the election of that community's religious leaders - alternate
government spokesman Evangelos Antonaros on Monday stressed that these were
issues governed by "international treaties that stipulate what must be
done".

Antonaros reiterated that Greece, as a democratic and European country,
respects all its international obligations adding that Turkey should see
that all its obligations to the EU will be met and observed because it will
be judged based on this and not on anything else.

During a visit to Greece, Erdogan said that he had complained about Greece'
failure to renovate two old mosques in Athens and 'to respect the religious
leaders elected by the minority'.

ATHENS, 9/5/2006 (ANA/MPA)

New Democracy MP and former party president Miltiades Evert on Monday sent
a letter to the chairman of Parliament's Institutions and Transparency
Committee Anastasios Karamarios in relation to the committee's ongoing
investigation into a phone-tap scandal revealed earlier this year by the
government.

In the letter, Evert asked that three heads of Vodafone technical services
departments be called to testify before the committee immediately after it
hears the testimony of the current head of the Greek intelligence service
EYP, Ioannis Korantis, and his predecessor Pavlos Apostolidis.

The three men named by Evert were Nikos Mastorakis, the head of Vodafone's
technological department, Nikos Plevris, head of the technician's
department and Nikos Babalis, head of the confidentiality department.

9/5/2006 (ANA/MPA)

A first instance court in Athens on Monday ruled that that French
aircraft-maker Dassault must handover company documents to the relatives of
the victims that died in an air accident aboard a Greek government
executive jet in September 1999.

Seven passengers, including then deputy foreign minister Yannos Kranidiotis
and his son, died when the "Falcon" model jet abruptly plunged several
thousand feet while approaching Bucharest, Romania. The plane's pilots
finally managed to get the aircraft under control before landing in
Bucharest.

Victims' relatives are seeking some 80 million euros from the plane's
manufacturer in claiming construction deficiencies.

The specific aircraft had been used repeatedly by then prime minister
Costas Simitis up until the accident.

ATHENS, 9/5/2006 (ANA/MPA)

Culture Minister George Voulgarakis said in Parliament on Monday, replying
to a question by main opposition PASOK party deputies on the utilization of
the Olympic Games property that the Olympic Centre in Nikea, near Piraeus,
will be provided for the University of Piraeus.

"In this way we are giving a permanent and final solution to the
infrastructure problem of an important educational foundation and, at the
same time, we are contributing considerably to the economic and social
development of one of the most neglected regions in the Attica basin," he
said.

ATHENS, 9/5/2006 (ANA/MPA)

A new vessel joined the fleet on Monday with the hoisting of the Greek flag
on the missile boat "First Lieutenant Krystallidis" at the Elefsina
shipyards in the presence of Deputy Defense Minister Vassilis Mihaloliakos.

The deputy minister was accompanied by Navy General Staff chief Vice
Admiral Dimitris Gousis. The missile boat is the third vessel of the Super
Vita type to be delivered to the Greek Navy.

Addressing the event, Mihaloliakos said that the government's commitments
"are being observed steadfastly". Commenting on international developments
and the issue of Iran in particular, the deputy minister reminded that the
government "is working for peace and the resolving of tensions through the
diplomatic channel".

The missile boat took the name of Vyronas Krystallidis, captain of the
escort ship Plias which sank near the port of Patras on April 21, 1941,
following a German raid.

9/5/2006 (ANA/MPA)

EFG Eurobank Ergasias on Monday announced a deal to acquire 70 percent in
Turkish bank Tekfenbank, the second acquisition by a Greek bank in Turkey
after National Bank acquired Finansbank a few weeks ago.

Eurobank signed a deal with Tekfen Holding (Tekfen Group) for the purchase
of 70 percent in Tekfenbank, including 100 percent in Tekfen Leasing.

Under the deal, which values the Turkish bank at 260 million US dollars,
Tekfen Group will remain a strategic investor in Tekfenbank. Tekfenbank
will buy EFG Istanbul Securities, EFG Eurobank's subsidiary in Turkey. The
deal is expected to be completed in the third quarter of 2006.

Tekfenbank offers a wide range of banking products and services in Turkey
through an effective branch network covering the most wealthy regions of
the country, while its customer base was mainly from small- and
medium-sized enterprises.

Tekfenbank's strategy will focus on strengthening its presence in the SMEs
sector, by attracting new customers through its branch network totaling 30
units, creating new branches and boosting cross-selling of products.
Tekfenbank also seeks to gain access to the mortgage market and portfolio
management and to strengthen its activities in the country's capital
markets.

Tekfen Group, which celebrates its 50th anniversary this year, is one of
the most distinguished, private business groups in Turkey with activities
ranging from construction, to agricultural products (fertilizers), real
estate development and financial services. Tekfen Group reported an annual
turnover of 936 million US dollars in 2005.

EFG Eurobank expects that Turkey's economy would grow rapidly in the coming
years, along with its banking system. The Greek bank believes that
Tekfenbank offered a very strong base for its entry in the Turkish market
since the bank operated under modern infrastructure, and has a very good
quality of loan portfolio.

SOFIA, 9/5/2006 (ANA/MPA)

Greece and Bulgaria have taken major steps in becoming the 'powerhouse' in
the Balkans, fuelling growth, cooperation, stability and prosperity, Deputy
Foreign Minister Evripidis Stylianidis told the ANA-MPA in Plovdiv on
Monday, where he attended the opening of the most significant commercial
exhibit in Bulgaria.

"Relations between the two peoples go above and beyond governments, which
is why all governments serve the same purpose," he said.

Stylianidis also noted the great progress achieved in infrastructure in the
region, adding that a number of Greek companies have expressed an interest
in participating in the construction of the road network linking
Thessaloniki in northern Greece with the Bulgarian capital.

"As you can see, the Thessaloniki International Trade Fair is urging Greek
companies to participate in the Plovdiv exhibit, with the participation of
60 companies. The Greek and Bulgarian governments are cooperating in all
sectors, with particular emphasis in the energy sector, having given a
significant push to the Burgas-Alexandropoulis pipeline project," he said.

He also noted that Greece is Bulgaria's second-largest foreign investor.

"All these things show that both countries are headed in the right
direction. And of course, Greece is determined to support, in every way it
can, Bulgaria's EU accession so that it [Bulgaria] can become a
full-fledged member of the European family on January 1, 2007," he said.

PLOVDIV, 9/5/2006 (ANA/MPA)

Greece is the partner country in Bulgaria's largest trade fair, held in
Plovdiv.

"Our presence here signals a further strengthening in bilateral economic
cooperation, and shows in practice that our two countries, Greece and
Bulgaria, stand as an example in the Balkans and the wider region," Deputy
Foreign Minister Evripidis Stylianidis told the event.

Taking part are 60 Greek companies under the aegis of the Thessaloniki
International Trade Fair, and chambers of commerce and trade groups from
northern Greece.

ATHENS, 9/5/2006 (ANA/MPA)

Greece's presence in Latin America will become stronger in 2007 and 2008,
by undertaking drastic initiatives for the development of bilateral
relations with the region's countries, said Greece-Latin America Business
Council Chairman Constantine Antonopoulos addressing an Athens Commerce and
Industry Chamber event on business cooperation potential for Greece and the
Latin American and Caribbean countries held in Athens on Monday. He said
that he reached this conclusion based on statements by Deputy Foreign
Minister Evrypidis Stylianidis.

Antonopoulos mentioned that a business delegation under Stylianidis will
visit Brazil and possibly Argentina. He said that the Greek export and
partnership effort first targeted the Balkans followed by the Arab world,
India and China adding that now the time has come to target the
400-million-people market in Latin America, a region in search of
cooperation routes with the European continent. Antonopoulos pointed out
that Greece can become the bridge between the EU and Latin America,
mentioning that decisions like the abolition of double taxation between
Greece and Mexico should be adopted with other Latin American countries as
well.

Athens' Commerce and Industry Chamber chairman Drakoulis Fountoukakos
stressed within the framework of his meeting with the Latin American
ambassadors on Monday that the Greek economy has a high growth rate for the
past 10 years while a number of positive reforms have been promoted
recently aimed at further improving growth and attracting more foreign
investments.

Fountoukakos also added that the strategy followed by Greece gives a
special emphasis on boosting the competitiveness of the economy, the
extroversion of businesses, the attraction of direct foreign investments,
the use of new technology, the support of research, the creation of new
innovative products and the effort to make Greece an academic, cultural and
education center.

Argentina's ambassador to Athens Raul Alberto Ricardes addressing the event
stressed that the effort for democratization and stabilization is effective
in the majority of the Latin American countries creating the conditions
necessary for economic growth.

ATHENS, 9/5/2006 (ANA/MPA)

The 5th international leisure boat festival, hosted annually on the island
of Poros, was inaugurated Sunday by tourism development minister Fanny
Palli-Petralia, in a special opening ceremony.

Petralia underlined that her ministry believed in and invested in seaborne
tourism, and described the upgrading of related services as a key to the
growth of the sector.

The minister announced a "targeted" advertisement campaign, which she said
was one of the immediate steps being taken by the government aimed at the
development of seaborne tourism.

Poros mayor Spyros Spyridon said that Greece's tourism performance fell
short of the country's potential, and spoke of "factors" obstructing the
full development of the prospects of the Greek tourism product.

This year's festival is taking place May 7 to 11, organized by the
Municipality of Portos, the Greek Society of Yacht Brokers and Experts, and
the Union of Owners of Professional Pleasure Boats.

ATHENS, 9/5/2006 (ANA/MPA)

EasyCruise and Neorion Holdings on Monday announced the signing of a letter
of intent for the building of four cruise vessels at Neorion Holdings' two
shipyards in Elefsis and Syros.

EasyCruise said the cruise ships, with a capacity of 500 passengers each,
would be used for sea cruises in the Greek islands.

Stelios Hadjioannou, chairman of easyCruise, and I. Tavoularis, chief
executive in Neorion Holdings, met with Greek Economy and Finance Minister
George Alogoskoufis and presented their plan. Alogoskoufis reassured them
over the government's support for the project.

Speaking to reporters, after the meeting, the Greek minister said the
project underlined that economic environment in Greece was attractive for
large investment plans. "The specific investment will strengthen tourism
and the country's shipyards industry with additional positive impact on the
Greek economy," he said.

Under the plan, easyCruise's vessels will operate weekend and four-day sea
cruises from the Faliro marina to Mykonos and Syros and Santorini, Paros,
Naxos, Milos or Serifos, respectively.

9/5/2006 (ANA/MPA)

Hellas Sat, the company managing the activities of the Greek television
satellite, has signed another agreement, this time with the Ukrainian
UKR-Kosmos that includes a package of radio and television stations from
this country. The platform is expected to begin functioning in mid-June
this year.

According to a relevant announcement, the position of Hellas Sat will be
strengthened considerably in the television market of eastern Europe as a
strong and reliable provider of satellite services in the region, as a
result of the agreement, since UKR-Kosmos will broadcast its signal to
small antennas by using the strong signal of the Greek telecommunications
satellite.

ATHENS, 9/5/2006 (ANA/MPA)

The 65th anniversary of the Battle of Crete will be commemorated with a
number of events taking place mostly in Hania and other towns on the large
Mediterranean island this month.

Events open on May 14 in Sfakia and culminate on May 21 at Maleme airfield
with a re-enactment of the Battle of Crete.

A total of 55 WWII veterans, the majority from New Zealand, are expected
for this year's events.

The Battle of Crete began in the morning of May 20, 1941 when German forces
launched an unprecedented airborne invasion of Crete, code-named "Merkur".
The operation was successful in terms of finally taking the island from
Allied forces although the victory was so costly in terms of paratrooper
casualties that the Wehrmacht never again attempted a major airborne
operation.

The stiff resistance by ANZAC troops and local Cretans is also credited, by
many historians, with delaying the Nazi invasion of the Soviet Union.

ATHENS, 9/5/2006 (ANA/MPA)

President of the Hellenic Republic Karolos Papoulias will attend events
commemorating the end of WWII on Tuesday, organized by the Ioannina
prefecture at the municipality of Delvinaki, northwest Greece.

The WWII Memorial Monument at Delvinaki is dedicated to all those killed
during the fascist invasion, the Nazi German occupation and the Greek
Resistance Movement against the Axis occupation.

President Papoulias is expected to arrive at Ioannina airport on Tuesday
morning and after the scheduled events at the Delvinaki Memorial Monument
at noon, he will visit the local Town Hall to be honored for his role in
the resistance movement and declared an honorary citizen. The president
will also visit Pogoniani before returning to Ioannina to depart for Athens
on Tuesday afternoon.

Ecumenical Patriarch Vartholomeos, addressing a congregation at Agios
Ioannis here on Monday at the end of a service at which the Metropolitan of
Pergamos Ioannis had officiated, said that "we shall continue to proclaim
the message of love."

The Ecumenical Patriarch and the Metropolitan officiated at the event in
the presence of hundreds of pilgrims from Mytilene, the Aegean islands and
Istanbul.

Also present were the Greek Consul George Katapodis and the Mayor of
Pergama Rasit Tirper.

Two protest gatherings were carried out outside the historic basilica of
Agios Ioannis and in the streets of Pergama. The first was organized by the
Socialist Labor Party with about 50 people who shouted anti-imperialist
slogans and sang the Turkish national anthem. The second was organized by
the National Action Party and the "Grey Wolves" group with the
participation of less than 30 people who shouted such slogans as "Allah is
great" and also sang the Turkish national anthem.

The police had taken all necessary measures and did not permit the
demonstrators to interrupt the church service or bother the Ecumenical
Patriarch.

[29] President Papoulias, PM attend presentation of book on 1940-1945
National Resistance

ATHENS, 9/5/2006 (ANA/MPA)

President Karolos Papoulias and Prime Minister Costas Karamanlis attended
the presentation of the book by veteran leftist politician and outstanding
figure of the resistance during World War 2, titled "National Resistance
1940-1945" at the Evgenios Evgenidis Foundation on Monday evening.

Addressing the event, President Papoulias said of the two-volume work that
"I am here to honor Manolis Glezos. A historic personality", adding that
the book is a great contribution to young people to learn the truth about
the resistance struggle, to be taught and be given as an example.

Karamanlis said in a statement that "Greek resistance was written with
capital letters in world history. It was written with acts of heroism, with
acts of freedom such as of Manolis Glezos and, of course, with the blood of
thousands of Greeks, both known and unknown heroes."

He further pointed out that "ideals, freedom and justice remain topical as
bright examples for the younger Greeks."

Speaking during the presentation of the book, Interior, Public
Administration and Decentralization Minister Prokopis Pavlopoulos said that
"history is Ianos which refers us to the past and shows us the future".

Referring to the book, he said that the two volumes show us how a people
were struggling, saying that the method followed by Manolis Glezos to
register the National Resistance era is of great importance.

Coalition of the Left, Movements and Ecology party leader Alekos Alavanos
said that the book by Manolis Glezos "will continue to be written since it
illuminates the National Resistance and present day, touching on issues
which are also topical today and preoccupy, such as local administration,
relations between the church and the state and the great value of the unity
of the people."

Glezos thanked those present at the event and stressed that "your presence
here constitutes confirmation that our people do not forget to be 'present'
always when it is necessary to struggle" and underlined that "all who are
present at the presentation of his literary work are holding the torch of
vigilance lighted."

ATHENS, 9/5/2006 (ANA/MPA)

The National Council of Greek Women called for new action to stop violence
against women and children during a press conference it held in Athens on
Monday.

"The problem of violence against women is particularly worrying and
presents many extreme forms in our everyday lives," professor of
criminology Kalliopi Spinelli said, adding that it is everyone's duty to be
informed about the phenomenon of violence against women and children.

On his part, Yiorgos Moschos, Assistant Ombudsman and responsible for
children's rights, noted the state's obligations as defined by the
international treaty on children's rights.

"As we learn from children themselves during our visits to schools, Greek
children do not feel that they have the proper support regarding all types
of violence inside or outside the home," Moschos said.

He called on the Greek government to show greater commitment regarding the
protection of children by introducing discussions on the issue within the
educational system and training teachers and all professionals who work
with children in helping them to identify cases of abuse and teaching them
methods of intervention.

Additionally, parents must be taught about raising their children
non-violently and the consequences of abuse, Moschos added.

Paediatrician Eleni Adam said "our children live in violence," presenting
findings of a study, according to which 77% of fifth-graders of Athens
schools surveyed, said they had seen children hitting someone else.

The women's council will be holding a seminar on the issue at 9:30 a.m.
Thursday at the amphitheatre of the General Confederation of the Employees
of Greece (GSEE).

ATHENS, 9/5/2006 (ANA/MPA)

Police on Monday reported the arrest and deportation of hundreds of illegal
immigrants that attempted to enter Greece over the weekend.

In one case, a truck driver and co-driver refused to stop when flagged down
by border guards on the Ioannina-Igoumenitsa road and jumped out of the cab
while driving at a low speed, leaving it driverless. When it came to a stop
after coming off the road, police found 27 Albanian illegal immigrants in
the trailer, who had each paid between ¬ 300-600.

In a similar incident, an Albanian truck driver was pursued by border
guards after refusing to stop and crashed his truck into a concrete bridge,
then injured himself during an attempt to escape on foot. A further 13
illegal immigrants were found in the truck, each having paid ¬ 650 for
passage into Greece.

Another high-speed chase involved an Albanian driver near the border in a
passenger car, who was carrying four Albanian women and their five
children, all illegal immigrants.

Overall, police said that a total of 162 Albanian illegal immigrants were
arrested and deported via Kakavia over the last three days.

ATHENS, 9/5/2006 (ANA/MPA)

The life of the great master painter and sculptor El Greco, or Domenicus
Theotokopoulos, a Cretan-born artist of the Spanish school, is to be the
subject of an ambitious Greek-Spanish co-production that is to begin
filming later this year.

In an interview on Monday, director Yiannis Smaragdis said that everything
was ready to begin shooting on location in the Autumn, starting on the
island of Crete and then on to Venice and Spain.

Also involved in the project is Italy, where El Greco spent a major part of
his life, while British actor Nick Ashdon has been cast to play the artist
at the age of 27, shortly before he begins his journey to the western
Mediterranean, and UK writer Jackie Pavlenko has co-written the script that
was based on the award-winning book by Dimitris Siatopoulos, "God's
Painter".

According to Smaragdis, the budget for the film is far beyond the means of
the Greek Film Centre but he did not reveal the exact amount.

The film will also feature local actor and comedian Lakis Lazopoulos, who
will play a Cretan shepherd that was Theotokopoulos' companion and
protector in his travels, as well as other local actors, while the cast
will also include several Spanish actors and the music will be written by
Vangelis.

9/5/2006 (ANA/MPA)

London School of Economics (LSE) Professor John Gray spoke about the global
challenges Europe faces, the Union's limitations and the new policy of the
Centre, during a speech he delivered on Monday as guest speaker at the
Constantinos Karamanlis Foundation for Democracy in Athens.

According to Gray, Europe will not be able to rise to the challenge of
political integration, it lacks clear goals, while enlargement only serves
to weaken the European Union, as it finds itself faced with the most
important strategic decision - that of Turkey's EU accession.

If Turkey is not accepted into the EU there will be problems of instability
in Turkey and the Middle East, he predicted, while in the event that Turkey
does become an EU member - an unlikely event, according to Gray - it will
extend Europe's borders to Iraq.

Europeans do not seem to be thinking or wondering what this would mean, he
said.

Gray's lecture "falls within a series of events which we are organizing in
the context of developments within various ideological movements in Europe
and the West, particularly [developments within] the liberal movement," the
Foundation's General Manager, Constantinos Arvanitopoulos said.

ATHENS, 9/5/2006 (ANA/MPA)

The Council of State on Monday decided that all cameras installed by the
Greek police in the Attica region will remain in place.

The council's decision suspends in part a decision taken by the Hellenic
Data Protection Authority in 2005 which allowed for the extended operation
of cameras for traffic control purposes, but the removal of cameras
installed in non-central locations such as squares and parks.

The Hellenic Data Protection Authority decision was to be in force until
the Council of State reached a definitive decision on the matter.

Monday's decision was taken after a request made by the public order and
finance ministers. However, cameras in non-central locations will not be
operating until the council of state's final decision.

ATHENS, 9/5/2006 (ANA/MPA)

A total of 106 talented and top performing pupils from Russia excelling in
math, physics, computer science, ecology, biology, history, philosophy,
music and dance are in Alexandroupolis, northeast Greece, as of Monday
within the framework of the international children's festival on "The
Children. The Genius, the Culture" taking place with the participation of
60 Evros prefecture students.

The festival will last until May 14 and is co-organized by the Prefecture
of Evros, the local Secondary Education Department and two tourist
operators from Moscow. It aims at the exchange of experience on the way
geniuses and top performing students are treated in different countries.
The festival program includes music concerts, painting exhibitions,
Alexandroupolis' museum tours and a symposium held in cooperation with
Democritus University of Thrace on "Science, Education, Culture, Third
Millennium".

ATHENS, 9/5/2006 (ANA/MPA)

President of the Hellenic Republic Karolos Papoulias on Monday received the
presidency of the association of Greek Olympic finalists, asking them to
encourage young people to take up sports.

The athletes also briefed the president on the course of preparations for
the next Olympic Games that will take place in 2008 in Beijing.

[38] President says Turkey hostile by blocking Cyprus in international
organizations

NICOSIA, 9/5/2006 (CNA/ANA/MPA)

Cypriot President Tassos Papadopoulos described here Monday Turkey's
insistence not to allow the participation of the Republic of Cyprus in
international organizations as ''a hostile action.''

Asked how the Cypriot government is dealing with the continuing Turkish
refusal to allow Cyprus to participate in international organizations,
President Papadopoulos said Cyprus continues to make representations,
calling on the European Union to implement the relevant article of the
EU-Turkey negotiating framework that calls on Ankara to cease such hostile
actions against the Republic of Cyprus.

President Papadopoulos' comments came after Cypriot daily newspaper
''Phileleftheros'' reported on Sunday that Turkey is vetoing the
participation of Cyprus in a PSCI exercise named ''Anatolian Deer''
scheduled to be held in Turkey, from May 24 to 26.

The EU-Turkey negotiating framework notes that ''in the period up to
accession, Turkey will be required to progressively align its policies
towards third countries and its positions within international
organizations (including in relation to the membership by all EU Member
States of those organizations and arrangements) with the policies and
positions adopted by the Union and its Member States.''

[39] Britain not granting export license to Cypriot weaponry based on UK
policy

NICOSIA, 9/5/2006 (CNA/ANA/MPA)

The decision of the British authorities not to grant an export license for
weaponry belonging to the Republic of Cyprus is purely a technical
application of the United Kingdom's policy on arms exports to Cyprus,
British High Commission sources told CNA.

British sources said that the specific piece of weaponry is not in the
hands of the British authorities but of the company that has undertaken its
repair, and that the government simply has not issued an export license.

''The decision not to grant an export license is purely a technical
application of the UK's policy on arms exports to Cyprus,'' the British
High Commission sources said.

They added that ''this policy is in place for many years and is based on
the 1996 UN Security Council resolution 1062, which expresses 'serious
concerns about the modernization and upgrading of military forces' on the
island.''

Earlier Monday, Cypriot President Tassos Papadopoulos said the British
action to withhold weaponry belonging to the Republic of Cyprus caused
surprise, adding that various representations have been made.

NICOSIA, 9/5/2006 (CNA/ANA/MPA)

The new Apostolic Nuncio of the Holy See, stationed in Jerusalem,
Archbishop Antonio Franco expressed the hope

of the Holy See that ''as regards Cyprus, being now integrated into the
European Community, there may be a more concerted effort to find ways to
ensure the respect for the rights of individuals and communities and to
foster collaboration for the common good of all the inhabitants of this
beautiful island.''

Presenting his credentials to President Tassos Papadopoulos on Monday,
Archbishop Antonio Franco said the commitment of the Republic of

Cyprus ''to the search for peace through dialogue and negotiations is well
known'' and expressed, on behalf of Pope Benedict XVI, ''success in your
efforts.''

He added that ''the Holy See follows with utmost attention the evolution of
the history of the young Republic of Cyprus, which regained independence in
1960 but is still suffering the consequences of tensions and division.''

Receiving the credentials, President Papadopoulos noted that
''unfortunately our efforts to reach a viable settlement on the basis of a
bizonal, bicommunal federation continue to be undermined by the Turkish
intransigence that unacceptably aims to legitimize the division of our
country.''

''We hope and expect that Turkey would eventually meet all its political
and legal obligations vis-à-vis the European Union and its member states,
including the unconditional ratification of the Protocol extending its
Customs Union to all ten new member states,'' he added.

President Papadopoulos said that ''despite the recent initiatives of the
Government of the Republic of Cyprus to pursue negotiations, Turkey
continues to demonstrate its intransigence and its reluctance to approach
the Cyprus issue constructively.''

''I am convinced that the outcome of my meeting with the UN Secretary
General in Paris on the 28th February 2006 could give a new impetus to the
efforts for a lasting and viable solution in Cyprus. We sincerely aspire to
be engaged in substantive negotiations for the settlement of the Cyprus
issue and the reunification of our country,'' the President noted.

Referring to the Republic of Cyprus and the Holy See, President
Papadopoulos said they have ''a long history of friendly bilateral
relations and cooperation,'' adding that ''throughout the centuries we have
had our own valuable contribution in fostering and enriching the European
civilization, and we persistently continue up to the present day to
demonstrate our strong adherence to the humanistic values of freedom, peace
and democracy.''

The president said the government, ''acknowledging the importance of
maintaining and strengthening the respect and tolerance between different
civilizations, calls upon all states to support a genuine and constructive
Interfaith Dialogue.''

''In this respect, Cyprus will co-host with Malaysia in July the 2nd ASEM
(Asian-Europe Meeting) Interfaith Dialogue. We are looking forward to
welcome your participation to this initiative, while we are confident about
your valuable and constructive contribution,'' he added.

He noted that ''this initiative constitutes a significant contribution and
a fair response to the anachronistic voices of prejudice, intolerance and
bigotry'' and that ''the main message of the Interfaith Dialogue Forum is
the promotion of mutual understanding, tolerance and peaceful
coexistence.''

Archbishop Antonio Franco expressed his ''personal joy and emotion in
visiting your country for the first time in my life, remembering that
Cyprus was one of the Lands touched by Saint Paul in his first missionary
trip outside Palestine and that on this Land there is the tomb of St.
Barnabas, one of the earliest heralds of the Gospel, native of the place
and companion of Saint Paul.''